I thought it must be too low now so I moved everything around again and had another crack at this. Just for practice now.
So now that we have a nice flat surface that isn't going to deflect the tool lets try again.
At this point I decided to call it a night and had a quick look at the turning insert I was using.
I will probably go back to playing with the wax and delrin(?) blanks I have for a little while, at least until I get a better feel for how each of the tools work and getting them set properly. The good news there is that means I will probably get to the mill sooner again. I will rig up a fan that actually works to send some air over the stepper drivers as they do get quite hot although I think they are still just within spec for passive cooling. Then once that's done, I have worked out a method for driving the spindle so it will be full speed ahead for making some chips over there too.